Do you need to sign up for Making Tax Digital?
Answer a few quick questions to find out if, and when, you'll need to start using Making Tax Digital (MTD) for Income Tax.
The UK tax year runs from 6 April to 5 April the following year. For example, the "2024–25 tax year" means 6 April 2024 to 5 April 2025.
This takes about 60 seconds.
We'll ask about your income from self-employment and/or renting out property. This is your total turnover before any expenses have been deducted.
Do you earn money as a sole trader (self-employed) or from renting out property?
This includes freelance or self-employed work, and income from letting out one or more properties. It doesn't include income from a limited company or from being an employee (PAYE).
Was your total qualifying income more than £50,000 between 6 April 2024 and 5 April 2025?
"Qualifying income" means your total gross income (before expenses) from self-employment and property, added together.
Was your total qualifying income more than £30,000 between 6 April 2025 and 5 April 2026?
Same measure as before: gross income from self-employment and property, added together, before expenses.
Do you expect your total qualifying income to be more than £20,000 between 6 April 2026 and 5 April 2027?
This tax year is still ahead of us, so a best estimate is fine, you can always recheck closer to the time.
MTD for Income Tax doesn't apply to you right now.
It only applies to people with income from self-employment and/or UK property. If that changes in future, it's worth checking again.
You'll need to sign up for MTD for Income Tax.
Based on your answers, you must start using MTD for Income Tax from 6 April 2026.
No action needed right now, but you may have to sign up by April 2028.
Based on what you've told us, you're not required to sign up yet. If your qualifying income for the 2026 to 2027 tax year (6 April 2026 to 5 April 2027) ends up over £20,000, you'll need to join MTD for Income Tax from 6 April 2028. Keep tracking your turnover through the year, and check back nearer April 2027 once your figures are confirmed.
Based on your answers, you don't currently need to sign up.
Your qualifying income is under the thresholds for all three phases, so you don't need to sign up yet. You can sign up voluntarily if you have already submitted at least one self assessment tax return.
You don't need to be a bookkeeping expert to do this.
With the right basics, most sole traders and landlords can absolutely manage their own quarterly updates, and there's support if you'd like some hand-holding along the way.
Essential Bookkeeping for Sole Traders
An online course built specifically for business owners who want to handle their own books with confidence.
Explore the course →The Bookkeeping Hangout
For anyone who wants to do their own bookkeeping and quarterly updates, with a bit of hand-holding along the way.
Find out more →Prefer to hand it over to us?
If you'd rather outsource your bookkeeping and MTD updates altogether, tell us a bit about your business and we'll be in touch.